Britain’s biggest winemaker uncorks a record-breaking year as chief executive James Pennefather sticks to his audacious target of capturing 1 per cent of the global champagne market by 2035.

Chapel Down, Britain’s largest winemaker, has sold more than a million bottles of English sparkling wine in a single year for the first time, a watershed moment in its bid to seize 1 per cent of the global champagne market by 2035.

The Kent-based producer, listed on London’s junior Aim market and backed by the billionaire Lord Spencer of Alresford, said the million-bottle haul equates to roughly 0.4 per cent of champagne’s worldwide market share. James Pennefather, who took the helm as chief executive last year, expects that figure to climb to 0.7 per cent by the end of the decade.

Pennefather said the company’s long-term ambition was anchored in the available acreage across its native Kent. “We certainly do have options to get there faster, but it also slightly depends on what happens to the wider champagne market,” he said.

While champagne has historically been the preserve of formal celebrations, Pennefather argued that English sparkling wine was redrawing the boundaries of the category. “One of the real strengths of Chapel Down and English sparkling wine is that we’ve expanded the number of occasions on which people are drinking high-value sparkling wines,” he said. “That gives us confidence that we are also expanding the category as a whole.”

The company farms more than 1,000 acres of vineyards across the south-east of England, producing both still and sparkling wines. Its growing brand profile has been bolstered by partnerships with Ascot, The Boat Race and the England and Wales Cricket Board.

Results for the year ending 31 December 2025 lay bare the appetite for home-grown fizz. Group revenues climbed 19 per cent to £19.4 million, fuelled chiefly by a 38 per cent surge in off-trade sales through supermarkets to £9.4 million on the back of a 5 per cent rise in listings.

On-trade sales, those flowing through pubs, bars and restaurants, edged up 5 per cent to £2.6 million, helped by new account wins. International revenues jumped 49 per cent to £1 million, lifted by the firm’s tie-up with Jackson Family Wines in the United States and a higher profile at British airports and St Pancras International station.

The performance pushed Chapel Down back into the black, with pre-tax profits of £469,000 compared with a £1.4 million loss the previous year. Buoyed by a strong start to 2026, the board reaffirmed guidance for net sales of £22.1 million, in line with City consensus.

Pennefather conceded that the conflict in Iran was a watch-point for the business, although the Middle East accounts for only a “small” share of revenues. “We haven’t seen any immediate impact,” he said, “but a sustained increase in fuel costs could have an impact on profitability.”

Elsewhere, investors raised a glass to Carlsberg after the Danish brewer posted its first quarterly volume rise in a year, helped by its push into soft drinks. The world’s third-largest brewer, which counts Kronenbourg, Skol and Somersby cider among its stable, reported a 2.8 per cent lift in total organic volumes during the first quarter, with growth across every region. Soft drinks volumes leapt 10 per cent, driven in no small part by its £3.3 billion takeover of Britvic, while beer volumes nudged 0.4 per cent higher.

---

New York City Mayor Zohran Mamdani’s latest effort to close a widening budget gap is intensifying concerns among business leaders, as his proposal to scale back a key tax credit threatens a broad range of companies that rely on it to remain competitive.

FOX Business’ Gerri Willis joined “Varney & Co.” host David Asman to report on the proposal, which would reduce the pass-through entity tax (PTET) credit, used heavily by small- and mid-sized businesses, to help generate revenue for the city.

The PTET credit was introduced as a workaround to federal limits on state and local tax deductions (SALT) and has since become a financial lifeline for many businesses structured as S corporations and LLCs. Critics argue cutting it risks undermining those firms at a time when economic conditions remain uncertain.

O’LEARY SLAMS NYC TAX PLAN AS ‘SHEER BLIND STUPIDITY,’ DEFENDS WEALTHY INVESTORS

“Many states implemented a pass-through entity tax because many businesses file via the S corp or LLCs. And this became a workaround to keep them competitive,” Partnership for NYC President and CEO Steven Fulop said. “In a time where the economy is fragile in New York City, we’re saying just be cautious on these sort of things.”

The proposal is part of a broader push that includes higher income, property and corporate taxes, raising concerns about long-term economic stability and business retention.

TAX FIGHT HEATS UP AS NEW YORK TARGETS WEALTHY HOMEOWNERS

Gristedes CEO John Catsimatidis warned that the impact could extend beyond top earners, noting middle-income professionals and small-business owners could feel the strain.

“The people that make $300, $400, $500,000 a year, they are the ones… They have an option. They get up and leave,” Catsimatidis said during an appearance on “Varney & Co.” “You can’t destroy the real estate industry… In London, it’s been destroyed… If you do the same thing in New York that is a disaster.”

As policymakers weigh competing approaches, the outcome could shape how attractive New York remains for businesses navigating rising costs and fiscal uncertainty.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Operator

Good morning, ladies and gentlemen. Welcome at the presentation of the financial results for the first quarter. We have Cezary Stypulkowski, CEO; Vice President responsible for Finance, Dagmara Wojnar; Vice President for Risk Division, Marcin Jablczynski; and Ernest Pytlarczyk, Chief Economist of the Bank. Over to Cezary.

Cezary Stypulkowski
President of Management Board

Good morning, ladies and gentlemen. The first quarter was successful for the bank. We recorded net profit at PLN 1.2 billion. We feel a revival of credit action both in retail and in corporate markets, maybe excluding mortgage loans, but that’s a separate topic. We see increasing digitization of Pekao S.A. clients who historically followed the market.

With respect to this trend and the capital position remains very strong. I would like to stress here that we maintain a low level of risk cost although we assume that there might be a certain increase here. Anyway, the boundaries within which we move were defined more broadly than the current actuals.

We see 11% growth in loan funding covering various categories. Return on equity continues at a decent expected level. Cost to income ratio is not set in stone in connection with the need to inject capital in the bank. But stays at almost 30.5%, excluding the effects of burdens of the first quarter, mainly in relation to the contributions to the fund for banking stability.

We see the developments that relate to the principal lines in which Pekao S.A. has been not sufficiently invested in particular with regard to micro market, but

Indian stock market tumbled on Thursday, with Sensex and Nifty cracking over 0.7% each, as oil prices soared to historic levels, the rupee plunged to an all-time low, along with other factors that dampened investor sentiment.

The benchmark indices had slipped over 1% each in the morning, with Sensex crashing over 1,200 points and Nifty falling below 23,800 briefly. However, markets recovered some losses by afternoon. At close, Sensex was down 583 points at 76,913l, while Nifty was down over 180 points at 23,998. The sharp drop erased nearly Rs 5 lakh crore from the total market capitalisation of all companies listed on BSE, pulling it down to Rs 464 lakh crore.

Zomato-parent Eternal, Hindustan Unilever (HUL), Tata Steel, UltraTech Cement, M&M, Trent, L&T and Axis Bank shares were the top losers on Sensex, falling nearly 2-3%. Bucking the trend, Sun Pharma shares jumped 2% to emerge as the top gainer.

The sharp selloff in the stock market was broad-based, spilling over to small and midcap counters as well. The Nifty Smallcap 100 index declined 0.5%, while the Nifty Midcap 100 index tumbled nearly 1%. This came as India VIX, which measures volatility in the market, jumped around 6% to 18.46.

Nifty Metal and Nifty PSU Bank index declined around 2% each to emerge as the top sectoral loser. Nifty Pharma and Nifty IT meanwhile closed in the green. Around 1,976 stocks declined on NSE, while 1,295 advanced and 98 remained unchanged.

Here are the key factors impacting markets today:

1) Trump’s ‘extended blockade’ warning

US President Donald Trump said that the US blockade of Iranian ports could last months as peace talks remained stalled. While Iran has reportedly submitted a fresh peace proposal to end the weeks-long War, Trump is not satisfied. The Wall Street Journal said he had told national security officials to prepare for a prolonged blockade to compel the Islamic Republic to give up its nuclear programme.
“The blockade is somewhat more effective than the bombing. They are choking like a stuffed pig. And it is going to be worse for them. They can’t have a nuclear weapon,” Trump told Axios. His latest comments further spooked investors.

2) Oil prices cross $120/barrel

Oil prices surged amid escalating tensions, crossing $120 per barrel for the first time since Russia’s invasion of Ukraine in 2022. Brent crude futures rose around 4% to $123 per barrel in Thursday morning trade.

After comfortably falling below the $100 per barrel mark earlier this month, oil prices moved back above the crucial level last week as fresh attacks near the Strait of Hormuz raised concerns about supply disruptions.

3) Fed’s hawkish commentary

The US Federal Reserve kept its policy rates unchanged, with the decision being its most divided since 1992, as three officials dissented over guidance that still signalled a bias towards easing.

“Developments in the Middle East are contributing to a high level of uncertainty about the economic outlook,” the Committee said, adding that it remains attentive to risks on both sides of its dual mandate of growth and inflation.

4) Rupee weakens to all-time low

Rupee declined to a fresh all-time low of 95.07 against the US dollar on Thursday. Later, it pared some losses to close at 94.9050. Jateen Trivedi, VP Research Analyst of Commodity and Currency at LKP Securities, had warned that sustained FII outflows and elevated crude prices are pressuring the currency. “Higher oil prices are significantly increasing India’s import bill and inflation risks, limiting any meaningful recovery in the rupee,” he said. “The trend remains weak, with the currency consistently facing selling pressure on rebounds, indicating a lack of strong support at higher levels,” he added.

5) Global markets in red

Global markets mostly remained in the red as oil prices soared. Japan’s Nikkei tumbled nearly 1.3%, while Hong Kong’s Hang Seng and South Korea’s Kospi fell around 1.4% each, although China’s Shanghai Composite closed nearly flat in the green.

European markets remained mixed, with UK’s FTSE rising over 1%. France’s CAC fell 0.5% while Germany’s DAX gained 0.18%. Wall Street, however, closed nearly flat, with the Nasdaq ending the session in the green with marginal gains.

6) FII selling continues

Foreign investors remained net sellers of Indian equities on Wednesday, net selling shares worth Rs 2,469 crore, according to provisional data available on NSE. FIIs have now been net sellers of Indian equities for the sixth consecutive session.

While this does not reflect their trading activity today, sustained FII selling dampens investor sentiment and fuels the selloff in the market.

7) Bond yields soar

US Treasury yields rose to a one-month high after the Fed’s hawkish signal of growing inflation concerns. The yield on benchmark US 10-year notes rose 7.6 basis points to 4.43%, from 4.354% late on Tuesday, while the 30-year bond yield rose 5.7 basis points to 5.0011%. The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, rose 10.7 basis points to 3.951%, from 3.844% late on Tuesday.

Exit polls lead to volatility

Exit polls across four states and one union territory indicate a strong maiden electoral win for the Bharatiya Janata Party (BJP) in West Bengal, while incumbents are likely to retain power in Tamil Nadu, Assam and Puducherry, JM Financial said in its latest note. Kerala also appears set for a regime change, with the Congress-led United Democratic Front (UDF) likely to unseat the Left Democratic Front (LDF), which has ruled the state for the last 10 years, the domestic brokerage added.

Analysts say that exit polls often trigger short-term volatility, although their broader impact tends to be limited. Vishnu Tripathi, AVP at Garud Investment Managers, noted that such developments lead investors to reassess positions based on expected policy direction at the state level.

In this context, investors remember the sharp market volatility around the 2024 General Elections. After voting concluded, exit polls predicted a landslide victory for the National Democratic Alliance (NDA), led by Prime Minister Narendra Modi. They projected that the BJP would win more than 272 seats in the 543-member Parliament, while the NDA could win up to 370 seats. This had pushed markets sharply higher on Monday (June 3, 2024), a day before the correction.

As the session began on June 4, 2024, investors panicked as early trends in the actual results diverged sharply from expectations. The BJP failed to reach the halfway mark on its own, and the NDA won 293 seats to form the government, although with fewer seats than expected. Sensex and Nifty fell nearly 6% each on June 4, 2024, wiping off a significant portion of investors’ wealth.

(With inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)